1
YELLOW VOL. CCLXIV NO. 117 ******** SATURDAY/SUNDAY, NOVEMBER 15 - 16, 2014 HHHH $2.00 WSJ.com At 3 p.m. last Saturday, a North Korean official went to the State Guesthouse in Pyong- yang to instruct U.S. Director of National Intelligence James Clapper and his small team to pack their bags. On a secret mis- sion to secure the freedom of two Americans imprisoned by the regime, Mr. Clapper thought at that moment that he might be sent home empty-handed. Instead, the Americans were released to his custody. Mr. Clap- per also got a glimpse into a closed country the U.S. has for years struggled to understand. He is the only U.S. intelligence offi- cial ever invited to North Korea. Mr. Clapper revealed details of the trip in an interview with The Wall Street Journal. The North Koreans seemed disappointed when he arrived without a Please turn to page A9 WEEKEND AMERICA, WORLD COP REVIEW Inside Fashion Pros’ Closets OFF DUTY n Halliburton moved to overthrow the board of rival Baker Hughes, after merger talks between the oil-services companies broke down. A1 n U.S. retail sales rebounded and an index of consumer sen- timent rose to a postrecession high in October on lower gas prices and a run of hiring. A3 n The eurozone economy eked out only weak growth, as Europe struggles to es- cape a six-year slump. A8 n Brazilian police arrested 18 people, including a former executive at Petrobras, in a widening corruption probe. B1 n Hedge-fund manager Dan- iel Arbess is shutting down the $600 million Perella Wein- berg Partners Xerion fund. B1 n Hertz said it would restate results for 2012 and 2013, con- firming concerns about deep- ening accounting woes. B3 n Acquisition talks between Hasbro and DreamWorks An- imation have cooled and ap- pear unlikely to resume. B4 n The S&P 500 edged up 0.49 point to a fresh record of 2039.82. The Dow slipped 18.05 points 17634.74. B5 n The FCC is questioning AT&T after its CEO said the carrier would suspend plans to build ultrafast Internet service. B3 n Ex-mogul Thomas Middel- hoff was sentenced to three years in prison for misuse of funds as head of Arcandor. B4 What’s News i i i Business & Finance World-Wide i i i CONTENTS Books........................ C5-10 Corporate News B3-4,13 Eating....................... D8-10 Gear & Gadgets D13-14 Heard on Street....... B14 Letters to Editor .... A12 Opinion................... A11-13 Sports............................ A14 Stock Listings........... B11 Style & Fashion..... D1-3 Travel........................... D6-7 Weather Watch...... B14 Wknd Investor ...... B7-9 s Copyright 2014 Dow Jones & Company. All Rights Reserved > Inside NOONAN A13 The Loneliest President Since Nixon T housands marched on the capital of the Mexi- can state of Guerrero to pro- test the alleged massacre of 43 local college students. A1 n Some state-run health-in- surance exchanges still face problems going into the sec- ond year of enrollment. A2 n A Justice Department of- ficial defended the U.S. Mar- shals Service’s secret cellphone surveillance program. A4 n Boko Haram took control of the Nigerian town from which it kidnapped nearly 300 schoolgirls in April. A7 n The House passed legisla- tion approving the Keystone XL pipeline, though the fate of a Senate measure is unclear. A4 n Obama pledged to keep pressure on Myanmar’s gov- ernment to quicken the pace of its democratic progress. A9 n Tensions in Russia and Ukraine loom over a meet- ing of the Group of 20 in Australia this weekend. A9 n Initial reports say medi- cal errors were a possible cause of 12 deaths in an In- dian sterilization camp. A8 n An Ebola patient likely headed to the U.S. for treat- ment could depart from Sierra Leone as soon as Saturday. A8 n The probe that landed on a comet signaled it was alive and still functioning before its batteries gave out. A8 BY SIOBHAN GORMAN AND ADAM ENTOUS U.S. Official Gets a Rare Glimpse of North Korea CHILPANCINGO, Mexico— Thousands of demonstrators de- scended on this state capital on Friday to protest the recent al- leged massacre of 43 freshmen from a local teachers college, adding to days of unrest that has left roads blocked and govern- ment buildings torched. The protesters have seized dozens of town halls across two states and briefly shut airports in two nearby cities. On Friday, they hijacked food-delivery trucks belonging to Sabritas, a unit of PepsiCo, and handed out the goods inside to passersby. Mexico’s spreading unrest and sense of lawlessness are shaping up as major political and eco- nomic challenges to President Enrique Peña Nieto, with central bank policy makers saying the events could crimp the country’s sluggish economic growth, ac- cording to the minutes released Friday of its Oct. 31 meeting. Mr. Peña Nieto also is under scrutiny after reports surfaced that the title to a presidential family mansion belongs to a company whose owner won big government contracts. The presi- dential office has rejected any suggestions of wrongdoing and said the house was bought by the first lady, a successful actress. But the two seemingly dispa- rate developments—an alleged student massacre purportedly in- volving police and the mansion— have thrown the president off stride, dented his reformist im- age and raised new questions over how deeply he will be able to transform the U.S. neighbor and third-largest trading partner. “This is a political and per- sonal crisis for the president,” Please turn to page A7 BY DAVID LUHNOW Mexico Hit by Unrest, Scandal Alleged Massacre of 43 Students and Questions Over Mansion Test President On Eve of G-20 Meeting, a Warm Welcome for German Leader Pablo Martinez Monsivais/Associated Press KUSHIMOTO, Japan—Tokihiko Okada was on his boat one recent morning when his cellphone rang with an urgent order from a Tokyo depart- ment store. Its gourmet food section was running low on sashimi. Could he rustle up an extra tuna right away? Mr. Okada, a researcher at Osaka’s Kinki Univer- sity, was only too happy to oblige—and he didn’t need a fishing pole or a net. Instead, he relayed the message to a diver who plunged into a round pen with an electric harpoon and stunned an 88-pound Pacific bluefin tuna, raised from birth in captivity. It was pulled out and slaughtered immediately on the boat. Not long ago, full farming of tuna was considered impossible. Now the business is beginning to take off, as part of a broader revolution in aquaculture that is radically changing the world’s food supply. “We get so many orders these days that we have been catching them before we can give them enough time to grow,” said Mr. Okada, a tanned 57-year-old who is both academic and entrepre- neur. “One more year in the water, and this fish would have been much fatter,” as much as 130 pounds, he added. With a decadeslong global consumption boom depleting natural fish populations of all kinds, de- mand is increasingly being met by farm-grown seafood. In 2012, farmed fish accounted for a re- cord 42.2% of global output, compared with 13.4% in 1990 and 25.7% in 2000. A full 56% of global shrimp consumption now comes from farms, mostly in Southeast Asia and China. Oysters are started in hatcheries and then seeded in ocean beds. Atlantic salmon farming, which only started in earnest in the mid-1980s, now accounts for 99% of world-wide production—so much so that it has Please turn to page A10 BY YUKA HAYASHI TAMING THE WILD TUNA More Fish Make the Leap From Farm to Table When Jim Brailean attached activity monitors to the collars of his two dogs, he was looking for- ward to seeing how much exercise his labradoodle and golden doodle managed to clock each day. The data hound also had a feeling he might learn something about his dog walker. He had wondered if his full-size doodles were getting Chi- huahua-size walks. Sure enough, his wireless Tagg doggy tracker— which transmits movement data to his smart- phone—revealed that a sched- uled 30-minute walk had amounted to just one block. “I was surprised to find out what I suspected was true,” says Mr. Brailean, who is chairman of Snaptracs Inc., the company that makes Tagg. Meanwhile, two fitness ad- dicts on opposite sides of the country have a little competition going on—one where their dogs are the contestants. It was getting intense as Ol- iver, a golden re- triever in San Fran- cisco, woke up one recent morning al- ready trailing his opponent. Accord- ing to a doggy-fit- ness tracker called Whistle, his New York pal Tucker, also a golden re- triever, had sneaked in a 3 mile run before breakfast. “I have to ask Oliver: What would Tucker do?” quips Linda Messitt, Oliver’s owner. “Tucker would be exercising right now.” Please turn to page A14 BY GEORGIA WELLS Dog Gone? Pooch Pooped Out? Fitness Trackers Let Pet Owners Know i i i Gadgets Also Unleash Competition, Paranoia In Humans; Tallying Milo’s ‘Activity Points’ Tucker NOSE-TO-NOSE: German Chancellor Angela Merkel received a traditional Maori greeting on Friday during a ceremony in Auckland, New Zealand. Leaders of the Group of 20 major economies will meet over the weekend in Australia, where Ukraine will be on the agenda. A9 Japanese researchers spent decades learning how to farm tuna. Jeremie Souteyrat for The Wall Steet Journal Halliburton Co. moved to over- throw the board of rival Baker Hughes Inc. on Friday, after merger talks between the oil- services companies broke down. The impasse came on the deadline to nominate directors to Baker Hughes’s board for the company’s annual meeting in April. Baker Hughes’s directors are all up for election every year, meaning Halliburton could seize control with one fell swoop. “Baker Hughes is disappointed that Halliburton has chosen to seek to replace the entire Baker Hughes board rather than con- tinue the private discussions be- tween the parties,” said Baker Hughes Chief Executive Martin Craighead. A Halliburton spokes- woman declined to comment. Talks between the two Hous- ton-based companies, which have a combined market value of about $70 billion, have been start-and- stop in recent weeks, people fa- miliar with them have said. Now Halliburton intends to nominate candidates to replace Baker Hughes’s full board of di- rectors, Baker Hughes said. In a detailed release late Fri- day, Baker Hughes said it re- ceived an unsolicited proposal from Halliburton on Oct. 13, and talks ensued. It said the compa- Please turn to the next page BY LIZ HOFFMAN AND ALISON SIDER Bid for Baker Turns Hostile Halliburton Moves On Rival’s Board As Merger Talks Sour Classique Hora Mundi BREGUET BOUTIQUES NEW YORK BEVERLY HILLS BAL HARBOUR LAS VEGAS TOLL FREE 877-891-1272 C M Y K Composite Composite MAGENTA CYAN BLACK P2JW319000-8-A00100-10FEEB7178F CL,CX,DL,DM,DX,EE,EU,FL,HO,KC,MW,NC,NE,NY,PH,PN,RM,SA,SL,SW,TU,WB,WE BG,BM,BP,CC,CH,CK,CP,DN,DR,FW,HL,HW,KS,LG,LK,MI,ML,NM,PA,PI,PV,TD,TS,UT,WO P2JW319000-8-A00100-10FEEB7178F

2014 11 15 cmyk NA 04online.wsj.com/public/resources/documents/pageone111514.pdfUkraine loom over ameet-ing of the Group of 20 in Australia this weekend. A9 n Initial reportssay medi-calerrorswereapossible

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Page 1: 2014 11 15 cmyk NA 04online.wsj.com/public/resources/documents/pageone111514.pdfUkraine loom over ameet-ing of the Group of 20 in Australia this weekend. A9 n Initial reportssay medi-calerrorswereapossible

YELLOW

VOL. CCLXIV NO. 117 * * * * * * * *

SATURDAY/SUNDAY, NOVEMBER 15 - 16, 2014

HHHH $2 .00

WSJ.com

At 3 p.m. last Saturday, aNorth Korean official went tothe State Guesthouse in Pyong-yang to instruct U.S. Director ofNational Intelligence JamesClapper and his small team topack their bags. On a secret mis-sion to secure the freedom oftwo Americans imprisoned bythe regime, Mr. Clapper thoughtat that moment that he might besent home empty-handed.

Instead, the Americans werereleased to his custody. Mr. Clap-per also got a glimpse into aclosed country the U.S. has foryears struggled to understand. Heis the only U.S. intelligence offi-cial ever invited to North Korea.

Mr. Clapper revealed details ofthe trip in an interview with TheWall Street Journal. The NorthKoreans seemed disappointedwhen he arrived without a

PleaseturntopageA9

WEEKEND

AMERICA,WORLDCOP

REVIEW

InsideFashionPros’Closets

OFF DUTY

n Halliburton moved tooverthrow the board of rivalBaker Hughes, after mergertalks between the oil-servicescompanies broke down. A1n U.S. retail sales reboundedand an index of consumer sen-timent rose to a postrecessionhigh in October on lower gasprices and a run of hiring. A3n The eurozone economyeked out only weak growth,as Europe struggles to es-cape a six-year slump. A8n Brazilian police arrested18 people, including a formerexecutive at Petrobras, in awidening corruption probe. B1nHedge-fund manager Dan-iel Arbess is shutting downthe $600 million Perella Wein-berg Partners Xerion fund. B1n Hertz said it would restateresults for 2012 and 2013, con-firming concerns about deep-ening accounting woes. B3n Acquisition talks betweenHasbro and DreamWorks An-imation have cooled and ap-pear unlikely to resume. B4n The S&P 500 edged up0.49 point to a fresh recordof 2039.82. The Dow slipped18.05 points 17634.74. B5nThe FCC is questioning AT&Tafter its CEO said the carrierwould suspend plans to buildultrafast Internet service. B3n Ex-mogul Thomas Middel-hoff was sentenced to threeyears in prison for misuse offunds as head of Arcandor. B4

What’sNews

i i i

Business&Finance

World-Wide

i i i

CONTENTSBooks........................ C5-10Corporate News B3-4,13Eating....................... D8-10Gear & Gadgets D13-14Heard on Street.......B14Letters to Editor.... A12

Opinion................... A11-13Sports............................ A14Stock Listings........... B11Style & Fashion..... D1-3Travel........................... D6-7Weather Watch...... B14Wknd Investor...... B7-9

s Copyright 2014 Dow Jones & Company.All Rights Reserved

>

InsideNOONAN A13

The LoneliestPresident Since

Nixon

Thousands marched onthe capital of the Mexi-

can state of Guerrero to pro-test the alleged massacre of43 local college students. A1n Some state-run health-in-surance exchanges still faceproblems going into the sec-ond year of enrollment. A2n A Justice Department of-ficial defended the U.S. Mar-shals Service’s secret cellphonesurveillance program. A4n Boko Haram took controlof the Nigerian town fromwhich it kidnapped nearly300 schoolgirls in April. A7n The House passed legisla-tion approving the Keystone XLpipeline, though the fate of aSenatemeasure is unclear. A4n Obama pledged to keeppressure on Myanmar’s gov-ernment to quicken the paceof its democratic progress. A9n Tensions in Russia andUkraine loom over a meet-ing of the Group of 20 inAustralia this weekend. A9n Initial reports say medi-cal errors were a possiblecause of 12 deaths in an In-dian sterilization camp. A8n An Ebola patient likelyheaded to the U.S. for treat-ment could depart from SierraLeone as soon as Saturday. A8n The probe that landed ona comet signaled it was aliveand still functioning beforeits batteries gave out. A8

BY SIOBHAN GORMANAND ADAM ENTOUS

U.S. OfficialGets a RareGlimpse ofNorth Korea

CHILPANCINGO, Mexico—Thousands of demonstrators de-scended on this state capital onFriday to protest the recent al-leged massacre of 43 freshmenfrom a local teachers college,adding to days of unrest that hasleft roads blocked and govern-ment buildings torched.

The protesters have seizeddozens of town halls across two

states and briefly shut airportsin two nearby cities. On Friday,they hijacked food-deliverytrucks belonging to Sabritas, aunit of PepsiCo, and handed outthe goods inside to passersby.

Mexico’s spreading unrest andsense of lawlessness are shapingup as major political and eco-nomic challenges to PresidentEnrique Peña Nieto, with centralbank policy makers saying theevents could crimp the country’s

sluggish economic growth, ac-cording to the minutes releasedFriday of its Oct. 31 meeting.

Mr. Peña Nieto also is underscrutiny after reports surfacedthat the title to a presidentialfamily mansion belongs to acompany whose owner won biggovernment contracts. The presi-dential office has rejected anysuggestions of wrongdoing andsaid the house was bought by thefirst lady, a successful actress.

But the two seemingly dispa-rate developments—an allegedstudent massacre purportedly in-volving police and the mansion—have thrown the president offstride, dented his reformist im-age and raised new questionsover how deeply he will be ableto transform the U.S. neighborand third-largest trading partner.

“This is a political and per-sonal crisis for the president,”

PleaseturntopageA7

BY DAVID LUHNOW

MexicoHit by Unrest, ScandalAlleged Massacre of 43 Students and Questions Over Mansion Test President

On Eve of G-20 Meeting, a Warm Welcome for German Leader

PabloMartinezMon

sivais/A

ssociatedPress

KUSHIMOTO, Japan—Tokihiko Okada was onhis boat one recent morning when his cellphonerang with an urgent order from a Tokyo depart-ment store. Its gourmet food section was runninglow on sashimi. Could he rustle up an extra tunaright away?

Mr. Okada, a researcher at Osaka’s Kinki Univer-sity, was only too happy to oblige—and he didn’tneed a fishing pole or a net. Instead, he relayed themessage to a diver who plunged into a round penwith an electric harpoon and stunned an 88-poundPacific bluefin tuna, raised from birth in captivity. Itwas pulled out and slaughtered immediately on theboat.

Not long ago, full farming of tuna was consideredimpossible. Now the business is beginning to takeoff, as part of a broader revolution in aquaculturethat is radically changing the world’s food supply.

“We get so many orders these days that wehave been catching them before we can give themenough time to grow,” said Mr. Okada, a tanned57-year-old who is both academic and entrepre-neur. “One more year in the water, and this fishwould have been much fatter,” as much as 130pounds, he added.

With a decadeslong global consumption boomdepleting natural fish populations of all kinds, de-mand is increasingly being met by farm-grownseafood. In 2012, farmed fish accounted for a re-cord 42.2% of global output, compared with 13.4%in 1990 and 25.7% in 2000. A full 56% of globalshrimp consumption now comes from farms,mostly in Southeast Asia and China. Oysters arestarted in hatcheries and then seeded in oceanbeds. Atlantic salmon farming, which only startedin earnest in the mid-1980s, now accounts for 99%of world-wide production—so much so that it has

PleaseturntopageA10

BY YUKA HAYASHI

TAMING THE WILD TUNA

More Fish Make the Leap From Farm to Table

When Jim Brailean attachedactivity monitors to the collars ofhis two dogs, he was looking for-ward to seeing how much exercisehis labradoodle and golden doodlemanaged to clock each day.

The data hound also had afeeling he mightlearn somethingabout his dogwalker. He hadwondered if hisfull-size doodleswere getting Chi-huahua-size walks.Sure enough, hiswireless Taggdoggy tracker—which transmitsmovement data to his smart-phone—revealed that a sched-uled 30-minute walk hadamounted to just one block.

“I was surprised to find outwhat I suspected was true,” says

Mr. Brailean, who is chairman ofSnaptracs Inc., the company thatmakes Tagg.

Meanwhile, two fitness ad-dicts on opposite sides of thecountry have a little competitiongoing on—one where their dogsare the contestants.

It was getting intense as Ol-iver, a golden re-triever in San Fran-cisco, woke up onerecent morning al-ready trailing hisopponent. Accord-ing to a doggy-fit-ness tracker calledWhistle, his NewYork pal Tucker,also a golden re-triever, had sneaked

in a 3 mile run before breakfast.“I have to ask Oliver: What

would Tucker do?” quips LindaMessitt, Oliver’s owner. “Tuckerwould be exercising right now.”

PleaseturntopageA14

BY GEORGIA WELLS

Dog Gone? Pooch Pooped Out?Fitness Trackers Let Pet Owners Know

i i i

Gadgets Also Unleash Competition, ParanoiaInHumans; Tallying Milo’s ‘Activity Points’

Tucker

NOSE-TO-NOSE: German Chancellor Angela Merkel received a traditional Maori greeting on Friday during a ceremony in Auckland, NewZealand. Leaders of the Group of 20 major economies will meet over the weekend in Australia, where Ukraine will be on the agenda. A9

Japanese researchers spent decades learning how to farm tuna.

Jeremie

SouteyratforTh

eWallS

teet

Journal

Halliburton Co. moved to over-throw the board of rival BakerHughes Inc. on Friday, aftermerger talks between the oil-services companies broke down.

The impasse came on thedeadline to nominate directors toBaker Hughes’s board for thecompany’s annual meeting inApril. Baker Hughes’s directorsare all up for election every year,meaning Halliburton could seizecontrol with one fell swoop.

“Baker Hughes is disappointedthat Halliburton has chosen toseek to replace the entire BakerHughes board rather than con-tinue the private discussions be-tween the parties,” said BakerHughes Chief Executive MartinCraighead. A Halliburton spokes-woman declined to comment.

Talks between the two Hous-ton-based companies, which havea combined market value of about$70 billion, have been start-and-stop in recent weeks, people fa-miliar with them have said.

Now Halliburton intends tonominate candidates to replaceBaker Hughes’s full board of di-rectors, Baker Hughes said.

In a detailed release late Fri-day, Baker Hughes said it re-ceived an unsolicited proposalfrom Halliburton on Oct. 13, andtalks ensued. It said the compa-

Pleaseturntothenextpage

BY LIZ HOFFMANAND ALISON SIDER

Bid forBakerTurnsHostileHalliburton MovesOn Rival’s BoardAsMergerTalksSour

Cla

ssiq

ueH

ora

Mun

di

B R E G U E T B O U T I Q U E SNEW YORK BEVERLY H ILLS BAL HARBOUR LAS VEGAS

TOLL FREE 877- 891-1272

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P2JW319000-8-A00100-10FEEB7178F CL,CX,DL,DM,DX,EE,EU,FL,HO,KC,MW,NC,NE,NY,PH,PN,RM,SA,SL,SW,TU,WB,WEBG,BM,BP,CC,CH,CK,CP,DN,DR,FW,HL,HW,KS,LG,LK,MI,ML,NM,PA,PI,PV,TD,TS,UT,WO

P2JW319000-8-A00100-10FEEB7178F